Musk’s flirtation with buying Twitter appears to have begun in late March. That’s when Twitter said it contacted its board members — including co-founder Jack Dorsey — and told them it was buying stock in the company and wanted join the board, privatize Twitter or launch a competitor. Then, on April 4, he disclosed in a regulatory filing that he had become the company’s largest shareholder after acquiring a 9% stake worth about $3 billion ($4.37 billion ).
At first, Twitter offered Musk a seat on its board. But six days later, Twitter CEO Parag Agrawal tweeted that Musk would ultimately not join the board. His offer to buy the company materialized quickly thereafter.
Musk had agreed to buy Twitter for US$54.20 ($78.95) per share, inserting a “420” marijuana reference into his offer price. He sold about $8.5 billion ($12.38 billion) worth of Tesla stock to help fund the purchase, then bolstered his commitments by more than $7 billion ($10.2 billion). dollars) from a diverse group of investors, including Silicon Valley heavyweights like Oracle. co-founder Larry Ellison.
Inside Twitter, Musk’s offer was met with confusion and low morale, especially after Musk publicly criticized one of Twitter’s top lawyers involved in content moderation decisions.
As Twitter executives prepared to move the deal forward, the company instituted a hiring freeze, halted discretionary spending and laid off two senior executives. The San Francisco company also laid off staff, most recently part of its talent acquisition team.
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